Brussels, 16/05/2007 (Agence Europe) - On Wednesday the European Commission unanimously adopted a communication confirming its desire to see the construction phase of the Galileo project funded by the public sector (EUROPE 9424). In compliance with the mandate provided by the Council to the Commission on 22 March, Commission vice president in charge of transport, Jacques Barrrot, presented the press with a picture that above all aims to make good the delays encountered in the project's implementation. This scenario, which will be submitted to transport ministers at the Council on 8 June for their approval, includes immediate use of the EGNOS system, deployment of a constellation of 26 satellites subject to public orders and parallel negotiations for setting up a private-public partnership in the form of a franchise to the last phase of system exploitation beginning in 2012. The total cost of public funding will be more or less €1bn for 2007-2030, which, according to Commission estimates will be less onerous that if the previous scenario had been applied and there will be no repercussions on tax payers.
In practice, what the Commission is proposing is the completion of negotiations with the current consortium made up of 8 companies (ENEL, TelOp, Alcatel Lucent, Finnmecanica, HispaSat, Immersat, Thales, Aena), which since January 2007 have stalled due to the consortium's inability to agree on setting up an operational unity in charge of the order putting into orbit and use of the 26 satellites making up the Galileo system (the 4 first EGNOS satellites and the experimental Giove A satellite are already in orbit). At a press conference, Barrot explained that the consortium is being called on to get rid of its current form and that the “call for offers launched in 2005 will be cancelled”. A new call for offers will be launched in 2010, to find a private operator in charge of using and maintaining the system (30 satellites) from 2012 till 2030.
Obtaining and deploying the 26 remaining satellites will therefore be funded by the public sector (EU and member states) and orders will go through the European Space Agency (ESA). No change then, on this last point. In an effort to make good the delays and speed up the passage to the operational phase of the programme, ESA will be in charge of immediately activating the satellites and EGNOS system infrastructure (European Geostationary Navigation Overlay Service, the precursor of Galileo) by ensuring the availability of services at the beginning of 2008. Galileo, is expected to reach full operational capacity in 2012 with 30 satellites in orbit that emit signals. Barrot explained that the two public funding scenarios are possible and both will be subject to approval from the Council: Community funding, requiring agreement from Parliament, funding from member states. He affirmed that he was not hiding, “his preference for Community funding” and explained that the weight of this contribution would not be too great a chunk out of the Commission's budget. He gave the following example of, “€400 million a year for six years” our of an annual budget of €126bn, “costing the same as the construction of 400 kilometres of motorway”.
With regard to funding, the public sector will be expected to raise €2.4bn in the 2007-13 period, added to which is the €1bn already spent. The budgetary commitment for the entire period of the programme, fluctuates between €9-10bn up to 2030. The public sector will have to contribute to funding the exploitation phase as well as the construction phase, despite the franchise contract that has been evaluated very cautiously by Mr Barrot at “€200 million a year”. Money invested by the public sector will be recuperated through implementation of the programme. In this connection, Mr Barrot affirmed that as long as the Council did not change its mind, Galileo, “remains a civilian system under civilian control but there could also be military applications”. He added that, “the question of military use” has to remain open before the Council made a decision.
There is also the question of the Galileo Surveillance Authority that needs to be settled. This body is supposed to inspect all applications but its role, in the event of being taken over by ESA, is to take charge of the EU programme and is expected to be redefined. In the document adopted on 16 May, the Commission is proposing that in the event that the Authority is maintained, its role will be reduced to assisting the Commission in technical development tasks involving EGNOS and Galileo applications. The Commission will ensure political responsibility for project management and will be accountable to the European Parliament and Council. (aby)